With the impact of COVID-19 slowly fading and household incomes rising, the sale of premium skincare products is likely to increase in Malaysia. Multinational brands are stepping up research and development efforts to launch innovative new products to tap the Malaysian market. Hence, the Malaysian skincare market is expected to grow from MYR2bn ($485.1m) in 2021 to MYR2.5bn ($600m) by 2026 at a compound annual growth rate (CAGR) of 4.1% during 2021–2026, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026’ reveals that the market growth will be primarily driven by the facial care category, which is set to register the fastest value CAGR of 4.3% over 2021–2026, trailed closely by the body care category with a projected CAGR of 4.1% over the forecast period.

Anush Shaw, Analyst at GlobalData, says: “Industry growth will be driven by the economic recovery, rising per-capita incomes, and normalization of social life following the COVID-19 induced lull, which will prod consumers to step up spending on skincare products. Halal cosmetics continue to attract a large following in Malaysia.

“Moreover, the ballooning elderly populace of 65+ years is driving demand for anti-aging and pore strips creams. Opportunities abound for companies to capture the revival in public out-of-home mobility with innovative natural formulations in convenient on-the-go formats.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Malaysian skincare market in 2021, followed by health & beauty stores.

While the per capita expenditure (PCE) on skincare in Malaysia increased from $6.4 in 2016 to $7.2 in 2021, the PCE remains far lower than the global average of $9.8 and the regional average of $9.2. The PCE on skincare in Malaysia is set to reach $8.5 by 2026.

​Procter & Gamble, L’Oréal S.A., and Shiseido Company, Limited were the leading companies in the Malaysian skincare sector by value in 2021, and SK II and Shiseido​ were the top brands of the year.

Shaw concludes: “In the backdrop of the growing consumer awareness about the damaging long-term effects of harsh chemicals used in skincare products, the demand for products with natural and organic ingredients will rise. Owing to the growing concern about the safety of skincare products for their own use and their family members, Malaysians are going online more often to check product reviews of customers and beauty experts. The onus lies on manufacturers and marketeers to educate consumers about the safety of their products through social media portals and digital advertisements.”